Saturday 27 December 2014

Former CRC chief Paul Kiely may have to pay back part of his massive €740,000 retirement package

Revelation made in report of the administrator John Cregan who was appointed by the HSE

Eilish O' Regan, Health Correspondent

Published 19/06/2014 | 13:10

The Central Remedial Clinic
The Central Remedial Clinic

Paul Kiely, the former chief executive of the Central Remedial Clinic, may have to pay back part of his massive €740,000 retirement package, it emerged today.

Mr Kiely, whose retirement deal was paid for by charity funds to the disability organisation was not subjected to public pay cuts.

The revelation is made in the report of the administrator John Cregan who was appointed by the Health Serviice Executive (HSE) to oversee the running of the clinic.

The Central Remedial Clinic made the deal with Mr Kiely last year in a bid to save €367,000  but did not tell the Health Service Executive about it.

Mr Cregan said the board of the organisation would not have been obliged to pay out as much as they did to Mr Kiely because the Haddington Rd agreement with cuts in public pay was imminent.

The money were taken from its charity arm the Friends and Supporters of the Central Remedial Clinic which has funds of more than €12m.8m

The use of charity money to fund some of its pension scheme and "top ups" for some of its staff led to major controversy  last year and resulted in the resignation of the clinic's board.

Mr Kiely was on a salary of €242,000- €135,000 of which was paid for by donors.

Mr Cregan said the charity arm was set up  as a company separate from the CRC  in order to maximise the State funding which it received from the Health Service Executive.

He said:"The inference  drawn being that if the HSE had been aware of the level of funds available, it may have reduced its annual allocation."

He said a number of "big ticket" items were paid for out of the charity funds - these were not always recorded in minutes of its meetings.

The clinic itself had two payrolls - one for the executives and another for the rest of its staff.

Mr Cregan said that he did not find it necessary to refer any issue to am outside authority and “the overall standard of record-keeping and the normal financial transactions were properly supported and vouched.”

His findings showed the charity arm gave an  unsecured, interest free, long-term loan of €3m to the clinic to bail out its pension fund,

It also repaid  €550,000, on behalf of CRC Medical Devices, a company set up by the clinic which turned out to be loss making before being sold last year,

The clinic has seen its income from fund raising plummet in the wake of the scandal - falling from €404,000 in  2012 ti  €190,934 last year last year.

The report said:”The past six months have proved to be a traumatic time for the staff at the CRC but the appointment of new Boards and a CEO should pave the way towards a reinvigorated CRC.

“ The difficulties faced by all concerned should not be underestimated but, they are dwarfed in comparison with the challenges faced by

many of the CRC’s clients and their families in carrying out the normal tasks of daily living.

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